Rosa Luxemburg Stagnation and Progress of Marxism (1903)

In an article upon the controversy between the Marxist and the Jevonsian Schools in England, Bernard Shaw, the talented exponent of Fabian semi-socialism, derides Hyndman for having said that the first volume of Capital had given him a complete understanding of Marx, and that there were no gaps in Marxist theory – although Friedrich Engels, in the preface of the second volume of Capital , subsequently declared that the first volume with its theory of value, had left unsolved a fundamental economic problem, whose solution would not be furnished until the third volume was published. Shaw certainly succeeded here in making Hyndman’s position seem a trifle ridiculous, though Hyndman might well derive consolation from the fact that practically the whole socialist world was in the same boat! The third volume of Capital , with its solution of the problem of the rate of profit (the basic problem of Marxist economics), did not appear till 1894. But in Germany, as in all other lands, agitation had been carried on with the aid of the unfinished material contained in the first volume; the Marxist doctrine had been popularized and had found acceptance upon the basis of this first volume alone; the success of the incomplete Marxist theory had been phenomenal; and no one had been aware that there was any gap in the teaching. Furthermore, when the third volume finally saw the light, whilst to begin with it attracted some attention in the restricted circles of the experts, and aroused here a certain amount of comment – as far as the socialist movement as a whole was concerned, the new volume made practically no impression in the wide regions where the ideas expounded in the original book had become dominant. The theoretical conclusion of volume 3 have not hitherto evoked any attempt at popularization, nor have they secured wide diffusion.…